Archives For Crowd for Angels

You might think that with the budget of last week, it is all gloom for non-doms. However, it would pay to revisit a previous government initiative.

On 6 April 2012, the government introduced the very attractive Business Investment Relief (“BIR”) for non-UK domiciliaries. This is relevant if you are currently a resident in the UK, are treated for tax purposes as non- domiciled (non-dom), and have overseas income and gains.

Before 6 April 2012, if you brought, for example, £100,000 into the UK to make an investment (and are a 50% tax payer) then the amount you could have invested was around £50,000 after paying £50,000 in tax.  This would obviously discourage you from bringing your money into the UK.  However, if you as a non-dom now bring £100,000 into the UK to invest, you are able to invest the full £100,000 under BIR.

This is exactly what Business Investment Relief does, as it allows offshore resources which were previously excluded from the UK to now be invested in the UK tax free.

In effect – with top rate Income Tax rates at 50% – the UK Government is effectively giving a non-dom a subsidy of 50% on their investments.

In addition, you can also use the other reliefs such as EIS or SEIS when making an investment using funds remitted to the UK. This will also potentially save you up to 50% on your income tax bill (30% for EIS and 50% for SEIS).

For example, if a UK resident (but foreign domiciled individual) wants to invest £100,000 in a UK company using foreign income or gains, it can now been done with no exposure to tax; if structured correctly.

A £100,000 investment in an SEIS company gives back £50,000 (50% of £100,000) of income tax relief.  Therefore, in this example, the combination of Business Investment Relief and Enterprise Investment Relief would give the investor a UK taxation saving of £100,000 (being £50,000 BIR plus £50,000 SEIS relief).

Another relief is the ability for inheritance tax to be avoided.  If the investment is into an EIS or SEIS for example, it will qualify for business property relief after two years and therefore be inheritance free.

Crowdfunding is a popular way for small companies to raise money and provides many marketing opportunities that would otherwise be unavailable. Since many ideas that are crowdfunded are innovative and exciting, it levels the playing field for smaller companies to develop their products.

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UK-Crowdfunding-Association

We are pleased to announce that Crowd for Angels are now proud members of the UK Crowdfunding Association (UKCFA).

The UK Crowdfunding Association was formed in 2012 by fourteen crowdfunding businesses. Their aims are to:

  • Promote crowdfunding as a valuable and viable way for UK businesses, projects or ventures to raise funds.
  • Be the voice of all crowdfunding businesses in the UK  (donations, loans and equity) to the public, press and policymakers.
  • Publish a code of practice that is adopted by UK crowdfunding businesses.

Crowd for Angel’s director, Tony De Nazareth, said: “We are really glad to become part of this credible organisation and work towards improving the crowdfunding environment for both investors and companies. We will work hard to support the UKCFA’s values.”

Crowd for Angels is the first regulated crowdfunding platform for equity and debt funding for both Private and Public companies. We support UK companies through all stages of their lifecycle, from seed, developing, pre-ipo and when listed.

On 13th July 2012, Tony De Nazareth set out to forge his knowledge of quoted sector financing and social media platforms to create an online crowdfunding platform that allowed ordinary people to become investors in both debt and equity funding for Private and Public companies. Crowd for Angels was started

We wanted to challenge the status quo in the funding market, to help companies find funding and to give investor the opportunity to invest in companies they believe in.

In the coming months as we prepare for launch, Tony and his team look forward to the challenges and opportunities Crowd for Angels will bring.